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Tag: cushman wakefield echinox

  • Cushman & Wakefield Echinox takes over the management of Mendeleev Office 5

    Cushman & Wakefield Echinox takes over the management of Mendeleev Office 5

    Cushman & Wakefield Echinox was commissioned to manage Mendeleev Office 5, an office building recently delivered in Bucharest downtown, by Akcent Development.

    This is the fourth office building that has been taken over under the management of Cushman & Wakefield Echinox, the Asset Services department being responsible for the daily administration of the building, tenant relationship management, operational supervision, financial services and landlord reporting, through on-site specialists and at the company’s headquarters, coordinated by Mihaela Petruescu, Partner Asset Services.

    Mendeleev Office 5 is a boutique office building, which revitalizes a historic area of the city, being located between Piaţa Romană and Calea Victoriei.

    The building has a rentable surface of 4,500 square meters distributed on basement, ground floor and eight upper floors. The underground parking has 50 places and is equipped with bicycles facilities and electric charging stations.

    The project includes walkable terraces, intelligent integrated technologies, hybrid climate-control system architecturally designed and integrated, heat insulation, motorized windows, low energy consumption, and the terraces on the 3rd and 8th floors stimulate the tenants’ creativity and offer a panoramic view of the center of Bucharest.

    The occupancy rate of the building is over 60% at delivery, among the tenants being financial consulting, PR and marketing or construction companies (Jazz Communication, Tud Investment Consulting, Aktor, Skin Media). Advanced discussions are for the 6th and 7th floors, therefore only the first floor and the ground floor – suitable for two commercial spaces fitting, are available for lease.

    Mendeleev Office 5 is developed by Akcent Development, which also owns Eminescu Offices building, managed by Cushman & Wakefield Echinox, and Rosetti Tower building.

  • CTP acquires Equest Logistic Park for approximately EUR 30 million

    CTP acquires Equest Logistic Park for approximately EUR 30 million

    CTP expands its portfolio in the vicinity of Bucharest, on the A1, at Km 13, the ground zero of the industrial logistic market in Romania, buying Equest Logistic Park for approximately EUR 30 million from Forum Serdika.

    Equest Logistic Park is an A class logistics property with a strong and consistent performance history, a multi-tenant warehouse complex located in the largest industrial sub-market in Romania: Km 13 of the A1 motorway.

    The property fits well in CTP’s larger portfolio, with its 3 buildings that can accommodate flexible occupier needs in a single building.

    The property has had a stable portfolio of tenants throughout recent economic cycles, including important national and international online retailers, logistics and light-production companies, such as Garrett, Elmec Group, Hilti, BDG Group & Telekom.

    Cushman & Wakefield Echinox team managed the sale process and assisted the seller.

  • 90% of Romania’s industrial and logistics stock is located in eight cities

    90% of Romania’s industrial and logistics stock is located in eight cities

    The stock of industrial and logistics spaces in the local market has exceeded the 4 million square meter threshold, 90% of the total stock being concentrated in eight large cities from the southern, central and western parts of Romania, according to the Romania Industrial & Logistics Market report, made by the Cushman & Wakefield Echinox real estate consulting company.

    The only cities in the eastern part of the country that have attracted the attention of private developers of industrial and logistics parks are Iaşi, Roman and Brăila, which however accumulate less than 3% of the total stock, being avoided by most developers and potential investors primarily because of the problems related to infrastructure. By comparison, the stock in Sibiu is higher than in the entire Moldova region.

    Bucharest is the largest market

    Bucharest is the largest market, with almost 1.9 million square meters, coresponding to a share of about 46%, followed by Timisoara, which has crossed the 500,000 square meters threshold, and Ploiesti, with around 370,000 square meters. Over the last five years, the market has doubled, as developers have delivered between 400,000 and 500,000 square meters / year.

    2020 has the potential to become a record year, with a pipeline of about 700,000 square meters, out of which 400,000 square meters are expected to be delivered in Bucharest, where, besides the established western area connected to the A1 motorway, two other important logistics hubs are emerging: North-West (Dragomirești, Chitila, Mogoșoaia) and North (Ştefăneşti).

    The transactional activity remained at a high level in 2019, the companies leasing approx. 477,000 square meters, out of which contract renewals represented only 20%. The most active sectors were automotive (30% of the total demand), retail (physical and online – 20%), distribution in various sectors (12%) and logistics and transportation (10%).

    The largest owners of industrial and logistic spaces are CTP and WDP, which have a cumulative portfolio of about 2 million square meters, thus controlling half of the market. On the other hand, other developers, such as VGP, Global Vision, Industrial Element, P3 or Helios Phoenix, show a growing appetite for expansion.

  • Hong Kong tops global ranking of most expensive shopping streets

    Hong Kong tops global ranking of most expensive shopping streets

    Hong Kong’s Causeway Bay has retained its crown as the world’s most expensive shopping street with London’s New Bond Street taking the title for the costliest place in Europe to locate a retail store, according to new data from Cushman & Wakefield.

    The annual ‘Main Streets Across the World’ report tracks rents for 448 locations across 68 markets – the largest number ever included since it started in 1988. The report ranks locations by their prime rental value using Cushman & Wakefield’s proprietary data.

    Last year Causeway Bay ended five years of domination by New York’s Upper 5th Avenue and in the 2019 rankings, it retains its position with rents to locate a store amounting to 2.164 €/ sq m / month. Upper 5th Avenue is in second place at 1.775 € / sq m/ month, with London’s New Bond Street third in the global list, with 1.352 €/ sq m / month.

    The Avenue des Champs Elysées in Paris (1.166 €/ sq m/ month) and Milan’s Via Montenapoleone (1.142 €/ sq m/ month) complete the top five. The biggest rental rise in the top 10 saw Sydney’s Pitt Street Mall increase rents by a colossal 17.9% over the past 12 months, to reach 849 €/ sq m/ month. Five of the top 10 global streets were in Europe, with four in Asia and just one in the US.

    Report author Darren Yates, Head of EMEA Retail Research at Cushman & Wakefield: “In terms of rental performance, this year’s results are encouraging and demonstrate the resilience of the premier retail locations. Rents on the world’s top retail streets have been fairly stable and there is greater clarity on where retail is heading. However, there is downward pressure on rents in many weaker locations, particularly in the more mature markets of Europe and North America.”

    Bogdan Marcu, Partner Retail Agency Cushman & Wakefield Echinox: “The comprehensive Cushman & Wakefield global report shows once again that traditional retail is not slowing down. We will be witnessing changes in the consumer behavior over the next few years, and the retailers’ business will be entirely designed to interact omnichannel with the consumer. Retailers will try to create a unique experience through the integrated technology and innovative concepts of physical stores.”

    London tops European shopping streets

    From a European perspective, New Bond Street leads the way ahead of Paris and Milan, with Zurich’s Bahnhofstrasse at 683 €/ sq m/ month and Vienna’s Kohlmarkt at 405 €/ sq m/ month completing the top five. Among the top 10, Ermou in Athens saw the biggest rental rise of 14% to reach 285 €/ sq m/ month. Overall, rents in around 70% of locations in Europe were stable or up on last year. Polarisation is evident, however, between the more established markets of North Western Europe and Southern, Central and Eastern Europe, where modern supply is lower and online sales have yet to really accelerate.

    The Asia Pacific region is in a relatively strong position, with rents in over 80% of locations covered either rising or stable. India recorded a particularly strong performance, with solid rental growth across several cities, while retail rents in Hong Kong have been resilient in the face of the recent protests – although the outlook is more uncertain.

    In the Americas rental trends have shown a wide degree of variation. Rents in New York streets appear to be stabilising, following falls in recent years. Latin American retail markets continue to mature, although rents can be volatile.

  • Cushman & Wakefield Echinox takes over the Colosseum Mall

    The Asset Services department of the real estate consulting company Cushman & Wakefield Echinox has taken over the administration of the Colosseum shopping center since October 1st, thus expanding its portfolio in Bucharest with a project in full expansion.

    Opened in 2011, Colosseum represents the most important shopping destination in the northwest of the Capital, a developing area both in terms of the subway infrastructure and the residential segment, and regarding the premises for the development of the office sector.

    As a result of the expansion, whose inauguration is scheduled next year, Colosseum shopping center will reach a rentable area of ​​approximately 54,500 square meters.

    The new development project includes local and international brands, such as New Yorker, Colin’s, CCC, Noriel, DM Drogerie Markt, Gregory’s, Diverta, Coffee Ritazza, as well as 60 shops, restaurants, cafes and leisure area.

    In addition to the existing commercial offer that includes Carrefour, Leroy Merlin, Altex, JYSK, LC Waikiki, Sport Vision and Pepco, the new project will also benefit of a multiplex cinema operated by Happy Cinema, as well as a World Class fitness center.

    Mihaela Petruescu, Head of Asset Services, Cushman & Wakefield Echinox: “The integrated services offered, the vast experience and the dedication of the leasing and property management teams work very well together, thus this new mandate of the Colosseum project once again confirms the confidence given to us by the developers.”

    The Colosseum thus becomes the third commercial center in Bucharest under the administration of Cushman & Wakefield Echinox, along with Carrefour Orhideea and Penny Retail Park Fundeni.

    At the same time, since the beginning of the year, three office buildings from Bucharest, namely Ethos House, Eminescu Office and One Victoriei, have entered the Asset Management portfolio of the company.

  • The competition for quality real estate assets intensifies

    The investment volume in H1 2019 amounted to almost 410 million euros, a 6% increase compared to the similar period of last year, when the corresponding figure for investment transactions was of 386 million euros, according to Cushman & Wakefield Echinox calculations and estimates.

    At the Central and Eastern European (CEE) level, the Romanian market attracted around 10% of the total investment volume of 4.1 billion euros recorded in Poland, the Czech Republic, Slovakia, Hungary, Romania and Bulgaria.

    The first place was occupied by the Czech Republic (1.9 billion euros, with a share of 45%), which surpassed Poland, the country where an investment volume of about 1.3 billion euros (31%) was registered. Romania ranked 3rd, surpassing Hungary (7%), Slovakia (5%) and Bulgaria (2%).

    At the local level, the most active sector was again the office sector, with a share of 53% of the total volume, followed by retail (28%), while the industrial and logistics sector had a share of 18%. In regards to georgraphical distribution, Bucharest attracted 40% of the total real estate investments in Romania, being followed by Cluj-Napoca with 32%, while the other transactions were concluded in several cities.

    The most important transaction, in Cluj Napoca

    The largest transaction in terms of value was concluded by Dedeman, which purchased The Office project in Cluj-Napoca, with a total rentable area of ​​63,000 sqm, for 130 million euros, from NEPI Rockcastle and Mulberry Development.

    This transaction marks the consolidation of Dedeman’s portfolio, which is becoming an increasingly important player on the local office market. By acquiring The Bridge project, Dedeman had also made the largest transaction on the Romanian real estate market in 2018.

    Another important transaction was the one related to Oregon Park C in the Floreasca-Barbu Vacarescu area, the last building of the Oregon Park project, which was sold by Portland Trust to Lion’s Head Investments for an estimated 60 million euros.

    When it comes to the industrial segment, the most relevant transaction was the acquisition of the A1 Logistic Park project located at km 13 of the A1 motorway by CTP, the largest owner of industrial spaces, for approximately 40 million euros.

  • C&W Echinox takes over the management of Ethos House in Bucharest

    Cushman & Wakefield Echinox real estate consultancy company was appointed to manage the Ethos office building, situated in the Floreasca area, in Bucharest.

    This is the second mandate for the management of an office building by CWEchinox in 2019, the Asset Services department being therefore responsible for managing the day-to-day operations of the building and the relation with the tenants, the operational supervision, and also financial and reporting services directly to the owner, through a team of specialists both on-site and at the company’s headquarters, coordinated by Mihaela Petruescu, Head of Asset Services.

    Ethos House is a building of exceptional design, with a remarkable exterior façade inspired by the Renaissance architecture. The building has a leasable area of ​​around 8,000 square meters, distributed on the ground floor and seven floors above ground. There building also provides 100 parking spaces located in two underground floors.

    For Cushman & Wakefield Echinox, the two new mandates coincide with the expansion of the services offered through the property management department, which changed its name from Property Management to Asset Services.

    Mihaela Petruescu, Head of Asset Services, Cushman & Wakefield Echinox: “We are proud to expand the portfolio of properties that we manage with a new office building, Ethos House respectively, a building with a unique personality on Bucharest real estate market. We are a team who cares for people, buildings and every business, and this principle guides us on a daily basis. We are honoured by the fact that Mr. Anastasios Gotsis trusted us and we are motivated to contribute for the long-term success of Ethos House.”

  • The local real estate market is in the sight of Asian investors

    The local real estate market has begun to attract the attention of major Asian investors, as groups from China and South Korea are exploring the potential to invest directly in the primary commercial markets. It is feasible that the first transaction could occur by the end of this year, according to Cushman & Wakefield Echinox consultants.

    The local market is currently undergoing a maturing process, which also involves the diversification of investment capital, and Asian investors, who have made major acquisitions in Western Europe and Poland, are expanding their areas of ​​interest to the other countries in the region.

    Tim Wilkinson, Partner, Capital Markets, Cushman & Wakefield Echinox: „In recent years, we have seen a diversification of the investment capital via the entry of new players from the United States, Lebanon, the Czech Republic and Belgium, a process that we consider will continue with the first acquisitions by Asian investors attracted by quality projects, blue-chip tenants and by yields which are over 200 basis points higher than those from Central Europe.”

    Cushman & Wakefield data shows that Asian investors (from Malaysia, South Korea, Singapore, Philippines) have made acquisitions of over 2.8 billion euros in Poland over the past three years (2016-2018), having a market share of over 16%, while significant transactions have been signed in the Czech Republic and Hungary last year by Shinhan Investment from South Korea and by Mapletree from Singapore, as the share of Asian investors is expected to grow in these markets as well.

    On the local market, real estate transactions with a cumulative value of about 957 million euros were closed in 2018, the largest acquisitions being made by Dedeman, Sonae Sierra, Lion’s Head Investments and MAS Real Estate, in partnership with Prime Kapital.

    The prime yields in the local market are 6.75% for the retail sector, 7.25% for the office sector and 8.75% for the industrial sector, with anticipated compression in 2019 as a result of the increasing interest from potential buyers. We can expect to see between 25 – 50 basis points compression from the current prime office and industrial yields in 2019. The timing for prime retail yield compression is highly dependent on when a truly dominant asset is brought to market.